May 14, 2007

Paying Off Our Chase Credit Card

My wife and I get paid every two weeks, therefore, there are two months of the year that we both receive three checks. Next month is one of those months for my wife.

We have decided to use her extra check, $1,161.67, to pay off our Chase credit card. Mathematically, this is not the right move since the card is 0% interest until March 2009. We’d be better off depositing the money into our Emigrant Direct account earning 5.05% APY and stretching the Chase credit card payments out to take advantage of the interest free period. However, the catch with the credit card is that if we are late with a payment, Chase can back-charge us interest. I hate having that hang over our heads, so from a piece-of-mind standpoint, paying off the card is the way to go for us.

It will be nice to have one less debt to worry about.

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